58 Amendments of Jean-Paul GAUZÈS related to 2013/0306(COD)
Amendment 54 #
Proposal for a regulation
Recital 23
Recital 23
(23) Asset Backed Commercial Papers (ABCPs) should be considered eligible money market instruments to the extent that they respect additional requirements. Due to the fact that during the crisis certain securitisations were particularly unstable, it is necessary to impose maturity limits and quality criteria on the underlying assets. NYet not all categories of underlying assets should be eligiblproved to be unstable, and in particular those bsecause some were more confronted to instability than othersuritizations where the underlying assets were associated with supporting the working capital of manufacturers and the sales of real economy goods and services, performed well and should be eligible. For this reason theABCP backed by underlying assets should be exclusively composed of short- term debt instruments that have been issued by corporates in the course of their business activity, such as trade receivables. Instruments such as auto loans and leases, equipment leases, consumer loans, residential mortgage loans, credit card receivables or any other type of instrument linked to the acquisition or financing of services or goods by consumers should not be eligiblecomposed of debt instruments that have been originated by bank clients, such as corporates or their captive financial subsidiaries, in the course of their business activity, including trade receivables, or other related debt held directly or indirectly, should be eligible for MMF investment. In this regard, instruments which provide working capital to bank clients, such as trade receivables, auto loans and leases, equipment loans and leases, SME loans and consumer loans should be eligible provided they are of high quality, liquid and otherwise satisfy maximum WAL requirement. ESMA should be entrusted with drafting regulatory technical standards to be submitted for endorsement by the Commission with regard to the conditions and circumstances under which the underlying exposure or pool of exposures is considered to exclusively consist of corporateligible debt and the conditions and numerical thresholds determining when corporatsuch eligible debt is of high credit quality and liquid.
Amendment 70 #
Proposal for a regulation
Recital 35
Recital 35
(35) In order to strengthen MMFs' ability to face redemptions and prevent MMFs assets from being liquidated at heavily discounted prices, MMFs should hold on an on-going basis a minimum amount of liquid assets that mature daily or weekly. A temporary deviation below these minimum amounts should be possible following a redemption of units or shares, provided that such deviation is remedied within a reasonable timeframe, in the best interests of unit-holders. To calculate the proportion of daily and weekly maturing assets, the legal redemption date of the asset should be used. The possibility for the manager to terminate a contract on a short term basis can be taken into consideration. For instance, if a reverse repurchase agreement can be terminated with a one day prior notice, it should count as a daily maturing asset. If the manager has the possibility to withdraw money from a deposit account with a one day prior notice, it can count as a daily maturing asset.
Amendment 78 #
Proposal for a regulation
Recital 39
Recital 39
(39) It is important that the risk management of MMFs not be biased by short-term decisions influenced by the possible rating of the MMF. Therefore, it is necessary to prohibit a MMF or its manager from requesting that the MMF is rated by a credit rating agency in order to avoid that this external rating is used for marketing purposes. The MMF or its manager should also refrain from using alternative methods for obtaining a rating of the MMF. Should the MMF be awarded an external rating, either on the own initiative of the credit rating agency or following request by a third party that is independent of the MMF or the manager and does not act on behalf of any of them, the MMF manager should refrain from relying on criteria that would be attached to that external rating. For ensuring appropriate liquidity management it is necessary that the MMFs establish sound policies and procedures to know their investors. The policies that the manager has to put in place should help understanding the MMF's investor base, to the extent that large redemptions could be anticipated. In order to avoid that the MMF faces sudden massive redemptions, particular attention should be paid to large investors representing a substantial portion of the MMF's assets, as with one investor representing more than the proportion of daily maturing assets. In this case the MMF should increase its proportion of daily maturing assets to the proportion of that investor. The manager should whenever possible look at the identity of the investors, even if they are represented by nominee accounts, portals or any other indirect buyer.
Amendment 81 #
Proposal for a regulation
Recital 40
Recital 40
(40) As part of a prudent risk management, MMFs should periodically conduct stress testing. Stress tests should be of particular relevance for CNAV funds in order to assess the resilience of their capital buffer. The managers of MMFs are expected to act in order to strengthen the MMF's robustness whenever the results of stress testing point to vulnerabilities.
Amendment 85 #
Proposal for a regulation
Recital 43
Recital 43
(43) To allow for the specificities of CNAV MMFs it is necessary that CNAV MMFs be permitted to use also the amortised cost accounting method for the purpose of determining the constant net asset value (NAV) per unit or share. This notwithstanding, for the purpose of ensuring at all times the monitoring of the difference between the constant NAV per unit or share and the NAV per unit or share, a CNAV MMF should also calculate the value of its assets on the basis of the marking to market or marking to model methods and make it available to the public on a daily basis.
Amendment 113 #
Proposal for a regulation
Article 2 – point 2
Article 2 – point 2
(2) ‘money market instruments’ means money market instruments as defined in Article 2(1)(o) of Directive 2009/65/EC and Article 3 of Directive 2007/16/CE;
Amendment 115 #
Proposal for a regulation
Article 2 – point 8
Article 2 – point 8
(8) ‘corporat"eligible debt’" means debt instruments issued by anentities or undertakings which is effectively engaged in producing or trading and/or financing the manufacturing, trading or providing goods or non-financial services;and non-financial services to the market. For the purpose of this definition, it should be understood, that entities such as captive finance subsidiaries are consistent with this definition and that debt instruments such as trade receivables, auto loans and leases, equipment loans and leases, SME loans and consumer loans of such undertakings are eligible provided they otherwise comply with the conditions set out in this Regulation.
Amendment 116 #
Proposal for a regulation
Article 2 – point 13
Article 2 – point 13
(13) ‘Short-term MMF’ (or ST MMF) means a money market fund that invests in eligible money market instruments referred to in Article 9(1);
Amendment 117 #
Proposal for a regulation
Article 2 – point 14
Article 2 – point 14
(14) ‘Standard MMF’ (or STD MMF) means a money market fund that invests in eligible money market instruments referred to in Article 9(1) and (2);
Amendment 133 #
Proposal for a regulation
Article 8 – paragraph 1 – point d a (new)
Article 8 – paragraph 1 – point d a (new)
(da) repurchase agreements.
Amendment 136 #
Proposal for a regulation
Article 8 – paragraph 1 – point d b (new)
Article 8 – paragraph 1 – point d b (new)
(db) units or shares of other MMFs;
Amendment 144 #
Proposal for a regulation
Article 10 – paragraph 1 – point a
Article 10 – paragraph 1 – point a
(a) the underlying exposure or pool of exposures consists exclusively of corporateligible debt;
Amendment 145 #
Proposal for a regulation
Article 10 – paragraph 1 – point b
Article 10 – paragraph 1 – point b
(b) the underlyingeligible corporate debt is of high credit quality and liquid;
Amendment 148 #
Proposal for a regulation
Article 10 – paragraph 1 – point c
Article 10 – paragraph 1 – point c
(c) the underlying corporate debt has a legal maturity at issuance of 397 days or less; or has a residual maturityexposure or pool of exposures has a weighted average life (WAL) of 397 days or less.
Amendment 150 #
Proposal for a regulation
Article 10 – paragraph 1 – point c a (new)
Article 10 – paragraph 1 – point c a (new)
(ca) the Asset Backed Commercial Paper has a legal maturity at issuance or a residual maturity of 397 days or less.
Amendment 153 #
Proposal for a regulation
Article 10 – paragraph 2 – subparagraph 1 – point a
Article 10 – paragraph 2 – subparagraph 1 – point a
(a) the conditions and circumstances under which the underlying exposure or pool of exposures is considered to exclusively consist of corporateligible debt;
Amendment 155 #
Proposal for a regulation
Article 10 – paragraph 2 – subparagraph 1 – point b
Article 10 – paragraph 2 – subparagraph 1 – point b
(b) conditions and numerical thresholds determining when corporateligible debt is of high credit quality and liquid.
Amendment 161 #
Proposal for a regulation
Article 12 – paragraph 1 – point d a (new)
Article 12 – paragraph 1 – point d a (new)
(da) the OTC derivatives are subject to clearing or to bilateral margin requirements.
Amendment 173 #
Proposal for a regulation
Article 13 a (new)
Article 13 a (new)
Amendment 174 #
Proposal for a regulation
Article 13 b (new)
Article 13 b (new)
Amendment 175 #
Proposal for a regulation
Article 14 – paragraph 1 – introductory part
Article 14 – paragraph 1 – introductory part
1. A MMF shall invest no more than 510% of its assets in any of the following:
Amendment 182 #
Proposal for a regulation
Article 14 – paragraph 5 – introductory part
Article 14 – paragraph 5 – introductory part
5. Notwithstanding the individual limits laid down in paragraphs 1 and 3, a MMF shall not combine, where this would lead to investment of more than 105% of its assets in a single body, any of the following:
Amendment 192 #
Proposal for a regulation
Article 16 – paragraph 3 – point b
Article 16 – paragraph 3 – point b
(b) a manager of a MMF shall adopt and implement adequate measures to ensure that the assignment of its internal ratings is based on a thorough analysis of all the information that is available and pertinent, and includes all relevant driving factors that influence the creditworthiness of the issuer;
Amendment 207 #
Proposal for a regulation
Article 17 – paragraph 2 – point a
Article 17 – paragraph 2 – point a
(a) the internal rating system shall be based on a single rating scale which exclusively reflects quantification of the credit risk of the issuer. The rating scale shall have six grades for non-defaulted issuers and one for defaulted issuers;
Amendment 231 #
Proposal for a regulation
Article 21 – paragraph 1 – point c
Article 21 – paragraph 1 – point c
Amendment 235 #
Proposal for a regulation
Article 21 – paragraph 1 – point d
Article 21 – paragraph 1 – point d
Amendment 239 #
Proposal for a regulation
Article 21 – paragraph 1 a (new)
Article 21 – paragraph 1 a (new)
Amendment 244 #
Proposal for a regulation
Article 22 – paragraph 1 – point c
Article 22 – paragraph 1 – point c
Amendment 245 #
Proposal for a regulation
Article 22 – paragraph 1 – point d
Article 22 – paragraph 1 – point d
Amendment 248 #
Proposal for a regulation
Article 22 – paragraph 2
Article 22 – paragraph 2
2. A standard MMF may invest up toshall hold : (a) at least 10% of its assets in the form of daily maturing assets; (b) at least 105% of its assets in money market instruments issued by a single bodythe form of weekly maturing assets. Whenever a redemption of units or shares prompts a standard MMF to sell daily or weekly maturing assets and to hold as a result less than the above ratios of daily and weekly maturing assets, the standard MMF should take action to remedy the breach taking due account of the interests of its unit-holders. Investment in units or shares of other Short-term or Standard MMFs may be included in the ratio of weekly maturing assets up to a maximum of 5% of the assets of the MMF.
Amendment 252 #
Proposal for a regulation
Article 22 – paragraph 3
Article 22 – paragraph 3
Amendment 256 #
Proposal for a regulation
Article 22 – paragraph 3 a (new)
Article 22 – paragraph 3 a (new)
3a. Notwithstanding the provisions of Article 10(1)(c), a Standard MMF may invest in securitisations (i) with a legal maturity at issuance or a residual maturity of 2 years or less and (ii) the underlying pool of exposures of which has an aggregate weighted average life (WAL) of 2 years or less.
Amendment 257 #
Proposal for a regulation
Article 22 – paragraph 4
Article 22 – paragraph 4
Amendment 269 #
Proposal for a regulation
Article 24 – paragraph 1 – point d a (new)
Article 24 – paragraph 1 – point d a (new)
(da) the cyclical evolution of the number of shares in the fund.
Amendment 271 #
Proposal for a regulation
Article 24 – paragraph 2 – introductory part
Article 24 – paragraph 2 – introductory part
2. The manager of the MMF shall ensure that:If the value of the units or shares held by a single investor exceeds 10% of the value of the fund, the manager of the MMF shall apply additional, more stringent, measures such as stress tests to ensure that a redemption by such an investor does not materially impact the liquidity profile of the MMF.
Amendment 272 #
Proposal for a regulation
Article 24 – paragraph 2 – point a
Article 24 – paragraph 2 – point a
Amendment 273 #
Proposal for a regulation
Article 24 – paragraph 2 – point b
Article 24 – paragraph 2 – point b
Amendment 276 #
Proposal for a regulation
Article 25 – paragraph 1 – subparagraph 1
Article 25 – paragraph 1 – subparagraph 1
Amendment 288 #
Proposal for a regulation
Article 25 – paragraph 2
Article 25 – paragraph 2
2. In addition, in the case of CNAV MMFs, tthe case of CNAV MMFs, stress test shall be considered as a core duty of the management of the fund intended essentially to test the resilience of the NAV buffer. The stress tests shall estimate for different scenarios the difference between the constant NAV per unit or share and the NAV per unit or share, including the impact of the difference on the NAV buffer. Based on the outcomes of the stress test, the manager shall develop action plans for difference possible scenarios.
Amendment 291 #
Proposal for a regulation
Article 25 – paragraph 4
Article 25 – paragraph 4
4. Stress tests shall be conducted at a frequency determined by the board of directors of the manager of the MMF, after considering what an appropriate and reasonable interval in light of the market conditions is and after considering any envisaged changes in the portfolio of the MMF. Such frequency shall be at least yearly. For CNAV MMFs, the frequency shall be at least quarterly.
Amendment 292 #
Proposal for a regulation
Article 25 – paragraph 5 – subparagraph 1
Article 25 – paragraph 5 – subparagraph 1
An extensive report with the results of the stress testing shall be submitted for examination to the board of directors of the MMF's manager. The board of directors shall amend the proposed action plan if necessary and approve the final action plan. For CNAV MMFs, the board of directors shall amend the proposed action plan if necessary and approve the final action plan.
Amendment 293 #
Proposal for a regulation
Article 25 – paragraph 6
Article 25 – paragraph 6
6. The report with the results of the stress testing shall be submitted to the competent authorities of the manager and of the MMF. The competent authorities shall send the report to ESMA. For CNAV MMFs, the competent authority shall analyse the results of the stress test and the potential related action plan.
Amendment 330 #
Proposal for a regulation
Article 29 a (new)
Article 29 a (new)
Article 29a Diversification limits for CNAV MMFs 1. By way of derogation from Article 14(1)(a), a CNAV fund shall invest no more than 5% of its assets in money market instruments issued by the same body. 2. By way of derogation from Article 14(5), and notwithstanding the individual limits laid down in paragraph 1 and Article 14(3), a CNAV fund shall not combine, where this would lead to investment of more than 10% of its assets in a single body, any of the following : (a) investments in money market instruments issued by that body; (b) deposits made with that body; (c) OTC financial derivative instruments giving counterparty risk exposure to that body.
Amendment 340 #
Proposal for a regulation
Article 30 – paragraph 4 – subparagraph 1
Article 30 – paragraph 4 – subparagraph 1
The NAV buffer shall be held in a protecdedicated reserve account opened with a credit institution that fulfils the requirements in Article 11(c), in the name and on behalf of the MMF.
Amendment 343 #
Proposal for a regulation
Article 30 – paragraph 4 – subparagraph 3
Article 30 – paragraph 4 – subparagraph 3
The reserve account or any amounts in the reserve account shall not be subject to any pledge, lien or collateral arrangement. In the event of the insolvency of the manager of the MMF or of the credit institution where the account is opened or of any entity that financed the NAV buffer, the reserve account shall not be available for distribution among or realisation for the benefit of creditors of the insolvent entity.
Amendment 371 #
Proposal for a regulation
Article 36 – paragraph 1 – introductory part
Article 36 – paragraph 1 – introductory part
1. IWithout prejudice to the rules laid down in Directive 2009/65/EC and Directive 2011/61/UE, in exceptional circumstances justified by systemic implications or adverse market conditions the competent authority may allow a MMF other than a CNAV MMF to receive external support referred to in Article 35 that is intended for or in effect would result in guaranteeing the liquidity of the MMF or stabilising the NAV per unit or share of the MMF provided that all of the following conditions are fulfilled:
Amendment 387 #
Proposal for a regulation
Article 37 – paragraph 5 a (new)
Article 37 – paragraph 5 a (new)
5a. A CNAV MMF shall transmit to its competent authority its Net Asset Value (NAV) per unit or share and the amount of its NAV buffer on a daily basis.
Amendment 391 #
Proposal for a regulation
Article 38 – paragraph 2 – subparagraph 1 – point b
Article 38 – paragraph 2 – subparagraph 1 – point b
(b) portfolio indicators such as the total value of assets, NAV, WAM, WAL, maturity breakdown, liquidity and yield as of the closing date of the reporting period;
Amendment 393 #
Proposal for a regulation
Article 38 – paragraph 2 – subparagraph 1 – point c
Article 38 – paragraph 2 – subparagraph 1 – point c
(c) For CNAV MMFs, the size and the evolution of the NAV buffer and the evolution of the difference between the constant NAV per unit or share and the NAV per unit or share throughout the quarter;
Amendment 394 #
Proposal for a regulation
Article 38 – paragraph 2 – subparagraph 1 – point d
Article 38 – paragraph 2 – subparagraph 1 – point d
(d) the results of stress tests on a quarterly basis for CNAV funds and yearly for VNAV;
Amendment 396 #
Proposal for a regulation
Article 38 – paragraph 2 – subparagraph 1 – point e – introductory part
Article 38 – paragraph 2 – subparagraph 1 – point e – introductory part
(e) information on the assets held in the portfolio of the MMF as of the closing date of the reporting period:
Amendment 397 #
Proposal for a regulation
Article 38 – paragraph 2 – subparagraph 1 – point e – point i
Article 38 – paragraph 2 – subparagraph 1 – point e – point i
(i) the characteristics of each asset, such as name, country, issuer category, risk or maturity, and internal ratings assigned;
Amendment 398 #
Proposal for a regulation
Article 38 – paragraph 2 – subparagraph 1 – point f – introductory part
Article 38 – paragraph 2 – subparagraph 1 – point f – introductory part
(f) information on the liabilities of the MMF that includes the following pointsto the extent possible, information as of the closing date of the reporting period:
Amendment 402 #
Proposal for a regulation
Article 38 – paragraph 4 – subparagraph 1
Article 38 – paragraph 4 – subparagraph 1
Competent authorities shall transmitbe able to transmit on demand to ESMA all information received pursuant to this Article, and any other notification or information exchanged with the MMF or its manager by virtue of this Regulation. Such information shall be transmitted to ESMA no later than 30 days after the end of the reporting quarter.
Amendment 406 #
Proposal for a regulation
Article 39 – paragraph 1
Article 39 – paragraph 1
1. TWithout prejudice to the rules laid down in Directive 2009/65/EC and Directive 2011/61/UE, the competent authorities shall supervise compliance with this Regulation on an on-going basis.
Amendment 414 #
Proposal for a regulation
Article 43 – paragraph 1
Article 43 – paragraph 1
1. Within the sixeighteen months following the date of entry into force of this Regulation, an existing UCITS or AIF that invests in short term assets and has as distinct or cumulative objectives offering returns in line with money market rates or preserving the value of the investment shall submit an application to its competent authority together with all documents and evidence necessary to demonstrate the compliance with this Regulation.
Amendment 419 #
Proposal for a regulation
Article 43 – paragraph 3
Article 43 – paragraph 3
Amendment 424 #
Proposal for a regulation
Article 43 – paragraph 4
Article 43 – paragraph 4